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supra at 250. Petitioners have the burden of proof. Rule
142(a).
It is undisputed that petitioners did not timely file their
individual tax return for taxable year 1990. Petitioners argue
that they missed the deadline "Due to exigent business
circumstances". Petitioners also argue that they, "in good
faith, had no expectation that any tax was due."
We conclude that petitioners have not met their burden of
proof. Petitioners did not explain the "exigent business
circumstances" that prevented a timely filing. Moreover, an
unverified belief that no taxes are owing does not constitute
reasonable cause of the sort that will allow petitioners to
escape the addition to tax pursuant to section 6651(a)(1). Olsen
v. Commissioner, T.C. Memo. 1993-432, and cases cited therein.
The question is not whether petitioners thought that they owed
tax but whether they knew or should have known that they needed
to file a return. Jackson v. Commissioner, 864 F.2d 1521, 1527
(10th Cir. 1989), affg. 86 T.C. 492 (1986); Olsen v.
Commissioner, supra. Consequently, we hold that petitioners have
not established reasonable cause for their failure to file timely
their 1990 tax return. Accordingly, petitioners are liable for
the section 6651(a)(1) addition to tax relating to their tax
liability for taxable year 1990.
Section 6662(a) imposes a 20 percent penalty on the portion
of an underpayment of tax that is attributable to, inter alia,
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